Summary comes from 'Management & Organizational Behavior' 11th edition. Written by Laurie J. Mullins with Gill Christy.
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International Business and Management Studies
Organization and People
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Organizations & People Block 1 Ch11 Summery
Which common characteristc defnes the division of work/grouping of actvitese
Major function (specializationn
Product or service
Location
Nature of work performed
Common time scales
Staff employed
Customers/clients
Combination of groupings
Centralizaton versus decentralizaton
Centralizaton Organizations in which most decisions-making authority is held by
upper-level management
decentralisaton Organisations which a great deal if decision-making authority is
delegated to levels if management at points below the top.
Choices based on:
nature of product or service provided
policy-making
day-to-day management
need for standardization
centralised
a centralised structure keeps decision-making frmly at the top of the hierarchy (amongst the
most senior management)
Advantages Disadvantages
Easier to implement common policies and More bureaucratic – ofen eetra layers in the
practices for the whole business hierarchy
Prevents other parts of the business from Local or junior managers are likely to much
becoming too independent closer to customer needs
Easier to co-ordinate and control from the Lack of authority down the hierarchy may
centre – e.g. with budgets reduce managers motivation
Quicker decision-making (useallyn – easier to Customers service does misses feeibility and
show strong leadership sped of local decision-making
Decentralised
Advantages Disadvantages
Decisions made closer to the consumer = Decision making is not necessarily ‘strategic’
better costomer serive
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